Is It Time To Gift Wrap Gibson?
Send get-well cards to Gibson Greetings. On July 1, just months after taking $19.7 million in charges to cover losses on derivatives contracts, the greeting-card marketer announced another financial explosion. Earnings for 1993 were overstated by about 20%, Gibson says, because its Cleo gift-wrap subsidiary inflated inventories. It believes the overstatement came from improper allocation of overhead. Gibson's stock sank 14% after the disclosure, to $13.75, less than half its price in early 1992. That has prompted speculation that Gibson could find itself a takeover target.
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